Stop The Bailout

To Our Elected Officials:

I have been in the tax and investment world for nearly 25 years; the last 10 in my own small business, working with several hundred businesses and individuals, in helping their personal and business hopes and dreams tangle with the realities of daily living.

In all of those years, I have never been moved to write to my elected officials. I have always trusted our democratic ways; and supposed that better minds than mine have properly wrestled with the enigmas of modern society %u2013 even when I have disagreed with the plans put forth; the actions taken; and/or the rhetoric given.

However, given our current environment of indecision, %u201Cnondecision%u201D and %u201Cundecision%u201D, I am compelled to spill forth. Please allow a small business owner his moment to opine.

Wall Street has proven that it cannot regulate itself. Business Titans have shown that they cannot see past their own seven, eight and nine-figure salaries. If the government is to be in the business world, as its actions seem to imply, it needs to adopt the attributes of the business world with which it is dealing. Government needs to stop pandering to those titans of industry, who crawl before it, looking for hand-outs. The government needs to apply the same practices that business uses on itself %u2013 tough negotiations; solid action plans; measurable objectives %u2013 before any funds and/or assistance is advanced. That%u2019s only good business advice.

The first item on the agenda is to shut off the spigot %u2013 the bailout has thus far proven ineffective. There are no clear objectives. There is no clear action plan. Indeed, as of this writing, the original bailout plan is already being redefined; before it has even really begun. This, after a three-page summary needed to be bloated to a 450-page free-for-all to get passed as legislation.

Cash thrown at the financial industry has, thus far, been horded by those charged with liquidating that cash into our system. This is %u201CProtectionism%u201D at its most selfish. %u2013 by those same unregulated entities that helped create our current crisis in the first place. The consumer remains strapped; the mortgagee remains choked. Credit relief has not gone to all who need it.

If getting the money back into our economy, as quickly as possible, is the objective, please consider that the bailout funds need to be returned to the American taxpayer. If the consumer is 2/3 of our GDP; that majority 2/3 cannot be held hostage by the 1/3 minority.

The current bailout package of  $ 700-plusBillion represents at least  $ 2,500 for every U.S. taxpayer. Since the U.S. government has already documented its fondness for %u201Cstimulus packages%u201D, perhaps it should send a message with yet another.

Evaluate what might happen if every U.S. taxpayer received his or her  $2,500 check. Should the taxpayer spend the money as a consumer, doesn%u2019t that money end up in corporate coffers anyway (saving jobs, stabilizing corporate profits, and shoring up shareholder value)? Should the taxpayer spend those funds on debt reduction, does that not free up capital for that debt to go elsewhere (new business, home improvement)? Should the taxpayer save that money; would not the banking industry get more deposit assets, strengthening their own balance sheets, thereby freeing up capital for more lending and investment? Should the taxpayer choose to invest for retirement, doesn%u2019t

that create more demand for our capitalist markets, helping right the listing ship of our stock and bond markets?

As a whole, then, under this %u201Creturn%u201D policy, isn%u2019t the money placed back into our system more quickly; and in more diversified ways, than the current corporate bailout ever will allow? Isn%u2019t diversification a societal cornerstone of our business, investment and personal lives?

A majority of Americans know what a stock is; and what a bond is. Our retirement plans are full of them. We are more savvy than ever in the ways of the investment world; and of the business world. Those of us who choose self-employment know how to run businesses on a shoestring; how to cobble together relationships that benefit both sides of the business table; and how to plan for the long-term viability of our businesses, for the sake of ourselves; our families; and our communities. This is %u201CProtectionism%u201D at its best.

We can see and feel greed and avarice running rampant in our system. We can see and feel the sloth and exploitation. And, to combat that, we know the K.I.S.S. theory. We know that straight-forward, honest assessments are what will get us ahead; in business and in life. We embrace empathy and compassion, when required. Indeed, we are the first to congratulate losers %u2013 as long as those losers have fought the good fight.

The auto industry has not fought the good fight. Their leaders %u2013 be they corporate management or union representation %u2013 have ignored long-term planning for short-term gain. In the world of business, their business model has been one of ineptness and, some would argue, outright stupidity. Had their recent business models been offered to the U.S. Small Business Administration, in request for an SBA loan, by any small-business entity in America today, that loan application would have been rejected outright. Any business-plan student would have been able to highlight their

lack of proper projections, their lack of understanding in assessing the competition; their lack of knowledge of the marketplace. Any similar small-business would have been allowed to wither and die; for there are plenty of existing, solid, forward-thinking businesses that will quickly fill the empty niche.

And, then, in the brutal world of business, if that empty niche does not get filled; it will be deemed that that niche was not viable to begin with.

Next.

If a bailout is to go to the auto industry, it is the rank-and-file taxpaying employees that deserve those designated funds, in extended and increased unemployment and mortgage work-out benefits that will be needed as they retrain, regroup; and re-assess what comes next in the land of opportunity.

And if you need political slogans to get the word out, please consider the following:

%u201CWall Street is No Street without Main Street%u201D

%u201CThe Bailout %u2013 The High, giving to the Mighty, Much of what came from the Many%u201D

Thank you for your time and attention %u2013 and I wish you Godspeed in continuing to do the People%u2019s Business.

To Our Elected Officials:

I have been in the tax and investment world for nearly 25 years; the last 10 in my own small business, working with several hundred businesses and individuals, in helping their personal and business hopes and dreams tangle with the realities of daily living.

In all of those years, I have never been moved to write to my elected officials. I have always trusted our democratic ways; and supposed that better minds than mine have properly wrestled with the enigmas of modern society %u2013 even when I have disagreed with the plans put forth; the actions taken; and/or the rhetoric given.

However, given our current environment of indecision, %u201Cnondecision%u201D and %u201Cundecision%u201D, I am compelled to spill forth. Please allow a small business owner his moment to opine.

Wall Street has proven that it cannot regulate itself. Business Titans have shown that they cannot see past their own seven, eight and nine-figure salaries. If the government is to be in the business world, as its actions seem to imply, it needs to adopt the attributes of the business world with which it is dealing. Government needs to stop pandering to those titans of industry, who crawl before it, looking for hand-outs. The government needs to apply the same practices that business uses on itself %u2013 tough negotiations; solid action plans; measurable objectives %u2013 before any funds and/or assistance is advanced. That%u2019s only good business advice.

The first item on the agenda is to shut off the spigot %u2013 the bailout has thus far proven ineffective. There are no clear objectives. There is no clear action plan. Indeed, as of this writing, the original bailout plan is already being redefined; before it has even really begun. This, after a three-page summary needed to be bloated to a 450-page free-for-all to get passed as legislation.

Cash thrown at the financial industry has, thus far, been horded by those charged with liquidating that cash into our system. This is %u201CProtectionism%u201D at its most selfish. %u2013 by those same unregulated entities that helped create our current crisis in the first place. The consumer remains strapped; the mortgagee remains choked. Credit relief has not gone to all who need it.

If getting the money back into our economy, as quickly as possible, is the objective, please consider that the bailout funds need to be returned to the American taxpayer. If the consumer is 2/3 of our GDP; that majority 2/3 cannot be held hostage by the 1/3 minority.

The current bailout package of  $ 700-plusBillion represents at least  $ 2,500 for every U.S. taxpayer. Since the U.S. government has already documented its fondness for %u201Cstimulus packages%u201D, perhaps it should send a message with yet another.

Evaluate what might happen if every U.S. taxpayer received his or her  $2,500 check. Should the taxpayer spend the money as a consumer, doesn%u2019t that money end up in corporate coffers anyway (saving jobs, stabilizing corporate profits, and shoring up shareholder value)? Should the taxpayer spend those funds on debt reduction, does that not free up capital for that debt to go elsewhere (new business, home improvement)? Should the taxpayer save that money; would not the banking industry get more deposit assets, strengthening their own balance sheets, thereby freeing up capital for more lending and investment? Should the taxpayer choose to invest for retirement, doesn%u2019t

that create more demand for our capitalist markets, helping right the listing ship of our stock and bond markets?

As a whole, then, under this %u201Creturn%u201D policy, isn%u2019t the money placed back into our system more quickly; and in more diversified ways, than the current corporate bailout ever will allow? Isn%u2019t diversification a societal cornerstone of our business, investment and personal lives?

A majority of Americans know what a stock is; and what a bond is. Our retirement plans are full of them. We are more savvy than ever in the ways of the investment world; and of the business world. Those of us who choose self-employment know how to run businesses on a shoestring; how to cobble together relationships that benefit both sides of the business table; and how to plan for the long-term viability of our businesses, for the sake of ourselves; our families; and our communities. This is %u201CProtectionism%u201D at its best.

We can see and feel greed and avarice running rampant in our system. We can see and feel the sloth and exploitation. And, to combat that, we know the K.I.S.S. theory. We know that straight-forward, honest assessments are what will get us ahead; in business and in life. We embrace empathy and compassion, when required. Indeed, we are the first to congratulate losers %u2013 as long as those losers have fought the good fight.

The auto industry has not fought the good fight. Their leaders %u2013 be they corporate management or union representation %u2013 have ignored long-term planning for short-term gain. In the world of business, their business model has been one of ineptness and, some would argue, outright stupidity. Had their recent business models been offered to the U.S. Small Business Administration, in request for an SBA loan, by any small-business entity in America today, that loan application would have been rejected outright. Any business-plan student would have been able to highlight their

lack of proper projections, their lack of understanding in assessing the competition; their lack of knowledge of the marketplace. Any similar small-business would have been allowed to wither and die; for there are plenty of existing, solid, forward-thinking businesses that will quickly fill the empty niche.

And, then, in the brutal world of business, if that empty niche does not get filled; it will be deemed that that niche was not viable to begin with.

Next.

If a bailout is to go to the auto industry, it is the rank-and-file taxpaying employees that deserve those designated funds, in extended and increased unemployment and mortgage work-out benefits that will be needed as they retrain, regroup; and re-assess what comes next in the land of opportunity.

And if you need political slogans to get the word out, please consider the following:

%u201CWall Street is No Street without Main Street%u201D

%u201CThe Bailout %u2013 The High, giving to the Mighty, Much of what came from the Many%u201D

Thank you for your time and attention %u2013 and I wish you Godspeed in continuing to do the People%u2019s Business.